Fitch: Convergys on watch

Fitch Ratings said it has placed the ratings of Convergys Corp. on rating watch negative following the company's announcement that it is evaluating a separation of the Information Management business from the existing businesses, Customer Management and Human Resources Management, in an effort to enhance shareholder value.

The company expects to announce the results of the review in the fourth quarter of 2008. Fitch said, noting that it expects the resolution of the rating watch will follow the company's conclusion of this review.

Fitch said that the following Convergys ratings are affected: long-term issuer default rating BBB, senior unsecured bank credit facility BBB, senior unsecured debt BBB, short-term issuer default rating F2 and commercial paper rating of F2.

Fitch added that it believes the bond indenture and credit agreement governing Convergy's 4.875% senior notes due Dec. 15, 2009 and $400 million credit facility, respectively, prohibit the company from selling, assigning, transferring or otherwise disposing of all or substantially all of the assets or capital stock of any subsidiary in which it controls more than 50% of the equity or ordinary voting power.

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